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Year 2 0 X 1 2 0 X 2 Net sales $ 1 , 2 0 0 , 0 0 0 $ 1 , 3
Year
X
X
Net sales
$
$
Cost of goods sold
Depreciation
Interest paid
Cash
Accounts receivable
D
Inventory
Net fixed assets
Accounts payable
Notes payable
Longterm debt
Common stock
Retained earnings
Tax rate
Dividend payout
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MartinJones has common shares outstanding. The firm is projecting a increase in net sales for the coming year X MartinJones uses the percentage of sales approach to plan for its financing needs. In using this approach, the firm assumes that cost of goods sold, depreciation, all assets current and fixed and accounts payable will all remain a constant percentage of sales. The firm will aim to maintain its dividend payout of for the foreseeable future. The interest rate charged on notes payable and longterm debt is also expected to remain the same in
a Construct the proforma statement of comprehensive income and statement of financial position for Martin Jones Company for X Calculate the external financing needed EFN for X Round all your numbers in the proforma statements to the nearest dollar.
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b Based on its X information, what is MartinJones's capital intensity ratio? mark
c What is MartinJones's full capacity sales if it is currently operating at capacity
X
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d How will the external financing needed EFN for X be affected if MartinJones is only operating at capacity? Interpret this EFN number, and explain what the firm can do with it
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e What is MartinJones's internal growth rate for X Round your final answer in percentage to two decimal places
f What is MartinJones's sustainable growth rate for X Round your final answer in percentage to two decimal places
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g Assume that MartinJones is operating at capacity. Calculate the EFN for the firm if it wants to grow its sales by for X In a few sentences maximum of discuss what you think this EFN number means for the company and its growth plan
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